HomeMy WebLinkAbout01-22-24 Board of Finance OFFICE OF THE CITY CLERK
BIANCA L.TIRADO, CITY CLERK
BOARD OF FINANCE JANUARY 22, 2024 4:00 pm.
Council Members Present: Ophelia Gooden-Rodgers, Sheila Niezgodski,
Troy Warner, Canneth Lee and Karen L. White
Council Members Absent: Dr. Oliver Davis, Sharon McBride, Sherry Bolden-
Simpson, Rachel Tomas Morgan
Others Present: Bianca L. Tirado, Danica Kulemeka, Elivet
Quijada- Navarro, Victoria Stowell, Bob Palmer
Presenters: Kyle Willis, Erik Clapsaddle
Agenda: Annual Board of Finance Meeting where the South
Bend Common Council convenes as a local Board
of Finance to elect its officers and to review the
City Controller's Annual Investment Report
Please note the attached link for the meeting recording:
https://docs.southbendin.gov/WebLink/browse.aspx?dbid=0&mediaid=380286
Council Vice President Sheila Niezgodski called to order the Board of Finance meeting at 4:00
p.m. She gave a brief overview of the agenda and then proceeded to open the floor to
nominations for Board of Finance President.
Election of Board of Finance Officers
Councilperson White nominated Vice-President Niezgodski to be the President of the Board of
Finance, seconded by Councilperson Canneth Lee.
No other nominations were presented.
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CITY OF SOUTH BEND OFFICE OF THE CLERK
Councilperson Canneth Lee-Aye Councilperson Ophelia Gooden-Rodgers-Aye
Councilperson Karen L. White-Aye Vice President Sheila Niezgodski-Aye
Councilperson Troy Warner- Aye
Board President Sheila Niezgodski, presiding opened nominations for the Secretary of the Board of
Finance.
Councilperson Troy Warner nominates himself for Secretary, seconded by Councilperson Canneth Lee.
No other nominations were presented.
Councilperson Canneth Lee-Aye Councilperson Ophelia Gooden-Rodgers-Aye
Councilperson Karen L. White-Aye Vice President Sheila Niezgodski-Aye
Councilperson Troy Warner- Aye
Councilperson Warner was elected Secretary of the Board of Finance.
Board President Sheila Niezgodski,then gave the floor to the presenters.
City Controller's Annual Investment Report
Kyle Wills,City Controller for the City of South Bend with offices on the 12th floor of the County-
City Building presented. He introduced the report, discussed investment review meetings and
investment officers, and then turned it over to the representative from First Source Bank.
Erik Clapsaddle, 100 N. Michigan Street, South Bend Indiana 46601, continued the presentation.
Mr. Clapsaddle, is Vice President and Senior Fixed Income Portfolio Manager at First Source
Bank. He spoke on the investment portfolio of the City. The market value is $2 million for the
portfolio. The City owns treasury notes and government agency notes in the portfolio. In 2016,
the estimated income for the city was $1.8 million for the year. The portfolio has an unrealized
loss of$746,330.22. Since 2016, its gone from $1.8 million to $6.2 million. Expected interest
rates are supposed to drop for the year 2024,which will affect the portfolio. Last year,First Source
Bank started buying U.S. Treasury notes because they were yielding at the same rate or higher
than market certified deposits. The maturities for each item in the portfolio are staggered to
account for market changes,
Board President Niezgodski thanked the presenters and opened the floor for Council questions.
Secretary Warner asked why we didn't see the twenty (20%) gain that the market saw last year
and why the City's portfolio was only in fixed income.
Erik Clapsaddle responded that legally the City is required to be in fixed income and that in the
parameters the CDs need to be eighty (80%) zero to two (0-2) years and twenty percent (20%)
two to five (2-5) years. The City is allowed to buy government agencies, treasury CDs, state of
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
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Indiana taxable unis. State law requires that the City be very conservative.
Kyle Willis continued the presentation highlighting various slides within the packet then moving
to the 2023 Cash Report. The City is in a very healthy position going into 2024. Mr. Willis also
mentioned that he and Mayor Mueller will be back in February for the Mayor's Finance Report
to the Council.
Board President Niezgodski asked Mr. Willis to go over the reserve funds for the City.
Kyle Willis stated that the reserve funds are put into place in case there is a downturn in revenue,
this allows the City to maintain the budget without straining other funds. Mr. Willis then went
through some examples. The General Fund has fifty percent(50%) of the annual reserved.
Councilperson White asked Mr. Willis what the takeaways were for 2024.
Kyle Willis mentioned that 2023 was a good year but that rates won't be up for ever,but the City
is entering 2024 in a good position.
Councilperson Lee asked Mr. Willis how much was in the reserves.
Kyle Willis stated that the General Fund has a reserve of$38.2 million.
Councilperson Lee asked where the$92 million amount was from.
Kyle Willis stated that it's the projected ending balance in the General Fund.
Councilperson Lee asked further if the City was in good financial standing.
Kyle Willis stated that the City was.
Board President Niezgodski asked if there were any further questions from the Council.
With no further business, Board President Niezgodski adjourned the Board of Finance meeting at
4:20 p.m.
Respectfully submitted,
Sheila Niezgodski, Chair of the Board of Finance
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INTEGRITYI SERVICE ACCESSIBILITY
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